The U.S. Securities and Trade Fee (SEC) is predicted to rule on the Grayscale Digital Giant Cap Fund (GDLC) this week, and an knowledgeable thinks a inexperienced gentle is nearly assured.
Nate Geraci, president of the ETF Retailer, predicted a “excessive probability” of approval, with such a call doubtlessly unlocking the trail for the primary U.S. spot ETFs monitoring main altcoins like XRP, Solana (SOL), and Cardano (ADA).
The Stepping Stone for Altcoin ETFs
Grayscale’s GDLC is a diversified belief holding Bitcoin (BTC), Ethereum (ETH), XRP, Solana, and Cardano. Approval to transform it right into a listed ETF would characterize the SEC’s first go-ahead for a U.S. product holding these particular altcoins inside the ETF wrapper.
Posting on X on June 30, Geraci argued that the regulator’s engagement, evidenced by the submitting of an amended S-3 kind simply final Thursday, indicators severe consideration.
He highlighted a regulatory loophole that enables as much as 15% of ETF holdings to be personal property, with some issuers getting “artistic” to exceed the restrict.
With XRP, SOL, and ADA making up lower than 10% of the GDLC portfolio, Geraci defined that excluding them could be inconsistent with the 1933 Securities Act. He additionally believes the GDLC would supply a low-risk “check run” for the SEC earlier than a “gradual step into different property.”
“Assume *excessive probability* that is permitted,” the analyst wrote. “Would then be adopted later by approval for particular person spot ETFs on xrp, sol, ada, and many others.”
Regulatory Thaw
The anticipated clearance follows a collection of pro-crypto developments in the USA. President Donald Trump’s embrace of the business has emboldened asset managers, resulting in a flurry of altcoin ETF filings since early 2025, together with standalone functions for XRP, SOL, and ADA from corporations like WisdomTree, 21Shares, and VanEck.
Grayscale itself has filed separate proposals to transform its XRP and SOL trusts into spot ETFs, an motion that, till not too long ago, would have been thought of lifeless on arrival. In February, the SEC acknowledged the funding large’s Solana ETF proposal, a transfer Bloomberg analyst Eric Balchunas referred to as “a child step, however a notable improvement.”
Moreover, one of many companies related to the president, Trump Media, now has some pores and skin within the recreation after filing for a spot Bitcoin and Ethereum ETF, with Crypto.com as custodian.
In the meantime, institutional demand for such merchandise is surging, with spot BTC ETFs attracting greater than $2.2 billion in inflows final week. This makes it seven straight weeks of web inflows and pushes the cumulative whole to only underneath $50 billion per information from SoSoValue.
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